Dow to supply ethylene for new US olefins project of Idemitsu, Mitsui

Dow Chemical has announced an initial agreement for long-term ethylene offtake for a new joint venture (JV) to be formed between Japanese firms Idemitsu Kosan Co. and Mitsui & Co. The JV will construct and operate a world-scale, linear alpha olefins unit on the US Gulf Coast.

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The Dow Chemical Co. has announced an initial agreement for
long-term ethylene offtake for a new joint venture (JV) to be
formed between Japanese firms Idemitsu Kosan Co. Ltd. and
Mitsui & Co. Ltd.

Idemitsu and Mitsui will form the JV to construct and
operate a world-scale, linear alpha olefins (LAO) unit on the
US Gulf Coast.

This agreement is part of Dows strategy to integrate
cost-advantaged feedstocks to support the profitable
growth of the companys performance plastics
franchise.

The JV will utilize an integrated supply of ethylene from
Dows production grid on the US Gulf Coast to produce LAO
used as comonomers throughout Dows high-value performance
plastics franchise, and it will contribute significant capital
for these rights.

Dow expects the agreement with the JV will enable a
long-term supply and purchase relationship for LAO, which will
enhance Dows high-value performance plastics franchise.
This will better enable the franchise to serve several of Dow's
fastest-growing market segments.

Location options for the LAO unit are currently being
explored, with final investment locations to be determined at a
later date.

The JV is in the front-end
engineering and
design (FEED) phase and will complete this work in 2014.
Construction and startup of the new
unit is targeted for 2016.

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